· Room night growth excluding eLong™ accelerated to 36% year-over-year, with domestic and international room nights growing 25% and 50% year-over-year, respectively.
· Gross bookings excluding eLong increased 21% and revenue excluding eLong increased 16% year-over-year. Excluding the impact of foreign exchange, gross bookings increased 26% and revenue increased 27% year-overyear.
· Solid performance in the Core OTA segment drove growth in Expedia® (excluding eLong) Adjusted EBITDA(1) of 13% year-over-year.
· Advertising & Media revenue excluding eLong delivered over $538 million in net revenue on a trailing twelve months basis, an increase of 23% year-over-year, driven by growth in trivago and Expedia Media Solutions.
· During the third quarter of 2015, Expedia added more than 14,000 properties to its global supply portfolio, which now stands at approximately 271,000 properties available on Expedia, Inc. sites, an increase of 29% compared to the third quarter of 2014.
· On September 17, 2015, Expedia, Inc. completed its acquisition of Orbitz Worldwide, Inc., including all of its brands and assets, for an enterprise value of approximately $1.6 billion. Results include 14 days of Orbitz financials for the third quarter of 2015 unless otherwise noted.
Gross Bookings & Revenue (excluding eLong)
Total gross bookings increased 21% (26% excluding foreign exchange) in the third quarter of 2015, driven by growth in the Core OTA business, including strong performance at Brand Expedia and Hotels.com. Robust room night and air ticket growth were partially offset by year-over-year declines in average daily room rates and airfares. Acquisitions added approximately 9 percentage points of inorganic bookings growth for the quarter. Domestic gross bookings increased 22% and international gross bookings increased 19% (37% excluding foreign exchange). International bookings totaled $5.8 billion and accounted for 38% of worldwide bookings, consistent with the third quarter of 2014.
Total revenue increased 16% (27% excluding foreign exchange) in the third quarter of 2015, driven primarily by the Core OTA business, including strong performance at Brand Expedia and Hotels.com, as well as at trivago. Acquisitions added approximately 6 percentage points of inorganic revenue growth for the quarter. Domestic revenue increased 18% and international revenue increased 15% (33% excluding foreign exchange). International revenue equaled $890 million, representing 46% of worldwide revenue, compared to 47% in the third quarter of 2014.
Product & Services Detail (excluding eLong)
As a percentage of total worldwide revenue in the third quarter of 2015, hotel accounted for 72%, advertising and media accounted for 8%, air accounted for 7% and all other revenues accounted for the remaining 13%.
Hotel revenue increased 17% in the third quarter of 2015 on a 36% increase in room nights stayed driven by Brand Expedia and Hotels.com, partially offset by a 15% decrease in revenue per room night. Revenue per room night decreased primarily due to an unfavorable foreign exchange impact, both in translation and in book-to-stay, deliberate margin reductions aimed at expanding the size and availability of the global hotel supply portfolio, as well as increased promotional activities such as growing loyalty programs. Revenue per room night is expected to continue to decrease year-over-year in 2015. Average daily room rates (“ADRs”) decreased 6% year-over-year in the third quarter of 2015, as currency-neutral ADR growth was offset by an unfavorable foreign exchange translation impact. ADRs are expected to be negative year-over-year in 2015. Acquisitions added approximately 6 percentage points of inorganic hotel revenue growth and 8 percentage points of room night growth for the quarter.
Air revenue increased 19% in the third quarter of 2015 due to a 31% increase in air tickets sold, partially offset by a 9% decrease in revenue per ticket. Acquisitions added approximately 15 percentage points of inorganic air revenue growth and 12 percentage points of air ticket growth for the quarter. Advertising and media revenue increased 17% in the third quarter of 2015 due to continued growth in trivago and Expedia® Media Solutions. All other revenue increased 15% in the third quarter of 2015 primarily on growth in car rental and travel insurance products.
· In September 2015, Expedia, Inc. completed its acquisition of Orbitz Worldwide, Inc., including all of its brands and assets, for US$12.00 per share in cash, representing an enterprise value of approximately $1.6 billion.
· Expedia launched an app exclusively for Samsung Galaxy phones, which features special pricing and a dedicated customer support line.
· Expedia announced new functionality that enables Expedia+ rewards members to redeem earned points towards merchant hotel purchases. Customers paying with points can also now combine them with other Expedia.com promotional coupons. Expedia+ rewards members also receive exclusive savings on standalone U.S. airport car rentals from Avis and Budget, saving anywhere from 10% to 30% off, through a partnership with Avis Budget Group.
· Expedia completed the global migration of its cruise product, ensuring that cruise is well positioned for future growth benefits from the same technological capabilities as all other Expedia products.
· The Hotels.com Rewards program welcomed its 20 millionth loyalty member in September. Since launch, more than 4 million free room nights have been redeemed by members.
· The Hotels.com mobile booking app was recently recognized as the 2015 Travel Weekly Silver Magellan Award Winner in the Online Travel Services App category. The Hotels.com mobile booking apps have been downloaded more than 50 million times and 1 in 3 Hotels.com transactions are now made via mobile devices.
· Hotels.com signed local marketing offers in partnership with SBI Card India. In addition, Hotels.com signed marketing partnerships with Industrial Bank in China, Citibank in Malaysia and BDO Bank in the Philippines.
· The Hotwire mobile app was ranked as one of the “Best Travel Apps of 2015” by PCMag. Additionally, Hotwire launched one-way car booking capabilities for its Android app.
· EAN entered into agreements to power online hotel bookings for Merit Loyalty Services and to provide technology solutions and access to global hotel content for Majid Al Futtaim Finance.
· Travelocity announced the launch of its Travel for Good program, a social media program supporting “voluntourism” efforts through cash and travel awards to charitably-minded travelers.
· Wotif revealed its new brand campaign (‘the home of holidays’) and kicked off its first TV campaign in 3 years.
· According to a recent company survey, one in two Americans now recognizes trivago, up from roughly 5% three years ago.
· trivago extended the range of tools available for hotelier support, allowing hoteliers to better market their properties directly on the site using the trivago Hotel Manager (tHM) platform.
· Egencia signed renewal agreements with Flowserve, a leading manufacturer and aftermarket service provider of comprehensive flow management products and services, and Decathlon, one of the world’s largest sporting goods retailers; and announced new customers, Gentherm, a global developer and marketer of innovative thermal management technologies, and Protein, an advertising and media company.
· Egencia Germany signed 20 new customers in Q3 2015, contributing to its 31% euro-denominated growth in gross bookings for the quarter.
· Traveldoo™, a leading provider of web and mobile platforms for business travel and expense management, signed an agreement to provide travel and expense technology for the world’s 4 th ranked international oil and gas company, Total S.A.
· During the third quarter of 2015, Expedia added more than 14,000 properties to its global supply portfolio, which now stands at approximately 271,000 properties available on Expedia, Inc. sites.
· Expedia, Inc. entered into a new agreement with Viva Aerobus and renewed agreements with a number of airlines, including Air Berlin, American Airlines, Avianca, British Airways, Iberia and South African Airways.
· The Expedia PartnerCentral App for iPhone and Android was introduced. The app is a new way to help hoteliers manage their business on Expedia, allowing them to receive up-to-the-minute booking information and notifications, view and reply to real-time guest feedback and quickly promote last minute inventory via their mobile device.